QatarEnergy has signed a long-term deal to supply condensate to Emirates National Oil Company (ENOC), which is owned by the Dubai government.
On Monday, the state-owned QatarEnergy confirmed the 10-year agreement “stipulates the supply of up to 120 million barrels of condensates to ENOC starting from July 2023”.
Qatar is expanding capacity of its North Field and aims to achieve liquefied natural gas production capacity of 110 million tonnes per annum by 2027, up from its current 77 million tpa nameplate capacity.
The expansion, being carried out through two phases, is expected to cost Qatar up to $50 billion, Upstream understands.
Qatar is involved in talks with multiple Asian and European clients to lock in long-term LNG and condensate supply deals from its second expansion phase, North Field South (NFS).
Chief executive Saad Sherida Al-Kaabi said QatarEnergy is “building on the historic working relationship and the trust in Qatar’s condensate exports to help further the growth and development” along with its partners.
“The agreement highlights QatarEnergy’s strategy in establishing direct sales with end-users and building up strategic business relationships and co-operation,” QatarEnergy said.
The “terms of the agreement allow parties to further increase the condensate volumes under the contract, as additional condensate volume is expected to be exported from Qatar once the North Field East [NFE] and North Field South expansion projects come online”, the company added.
Condensate production volumes from the NFE and NFS phases could not be confirmed by Upstream.
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